Lunch & Learn: Are appraisals the next big opportunity in mortgage fulfillment?

This Lunch & Learn for mortgage lenders will explore the evolution of the appraisal process as well as opportunities for innovation.

HousingWire Annual Virtual Summit

LAST CHANCE! Join us TODAY for a virtual recap of HousingWire Annual 2021! We will be streaming sessions and demos from our in-person event! Register now for content on all things housing!

Keep Up With the Latest Third Party Origination News

Want to stay up to date with the latest on the third party origination front? We designed a specific news hub with lenders and brokers in mind, with Rocket Pro TPO leading the discussion.

How to increase minority homeownership?

Today’s HousingWire Daily features a roundtable discussion from HousingWire’s Lunch & Learn series that looks at “Unpacking the lender’s vital role in increasing minority homeownership.”

Politics & MoneyMortgage

Mortgage complaints hit three-year-high, CFPB says

Director reiterates: "As we warned mortgage servicers last month, unprepared is unacceptable.”

In April, the Consumer Financial Protection Bureau warned the industry of its plans to keep a much closer eye on servicers as they transition borrowers out of forbearance. On Tuesday, a report from the government watchdog may have just kicked up the incentive.

According to the report, in March 2021, consumers submitted more mortgage complaints to the CFPB than in any month since April 2018. Within those complaints, mentions of forbearance and related terms reached their highest monthly average since March and April of 2020, while the number of borrowers who reported struggling to make payments also rose.

Complaints ranged from not being able to reach their servicers, to misinformation or lack of information, to confusing and incomplete post-forbearance options.

Consumers also reported long delays in having their loan modified so that they could resume payments on the mortgage. According to the report, in some cases these delays were due to demands for additional documents by servicers. In other cases, consumers said servicers provided conflicting information about what options were available and the consumer’s eligibility for loan modification.

“More borrowers are behind on their mortgage than at any time since the height of the Great Recession,” said CFPB Acting Director Dave Uejio. “Communities of color have been hit hard by the pandemic, and the latest data show that many borrowers are still hurting. The CFPB will continue to seek and actively respond to developments in the market, doing everything in our power to help families stay in their homes.  As we warned mortgage servicers last month, unprepared is unacceptable.”

The greater number of borrowers exiting forbearance right now also requires more labor from the servicers’ side given the Mortgage Bankers Association estimates 27% of exits since June of 2020 resulted in loan deferrals and partial claims.


Solving the Post-Close Challenge with Intelligent Automation

Join us for this webinar as SoftWorks AI CEO Ari Gross and Avanze CEO Auvese Pasha explore the advances in technology that allow for greater levels of automation and cost reduction, especially in support of post-close and pre-fund review.


The CFPB pointed out FHA loans in particular as having complications when borrowers attempted making a partial claim or modifying their loan to address forborne payments. FHA loans have had the largest forbearance portfolio share for the better part of the pandemic, although portfolio and private-label securities recently took that title.

The sudden spike in complaints to the CFPB signaled a significant shift in the 2.23 million borrowers who are still postponing their mortgage payments in 2021.

In 2020, the CFPB’s Home Mortgage Disclosure Act data painted a profoundly different picture after the Bureau reported complaints against mortgage servicers were down by 3.5% year over year.

March marked a substantial milestone for forbearance as the one-year mark since the inception of the COVID-related program. It also marked the expiration of that forbearance for some homeowners, while those with government-backed mortgages had the option to extend their plans out to 18 months.

However, non–federally backed borrowers don’t all have the same policies. A number of these loans may be held in bank portfolios, where it is up to the bank’s discretion to offer the relief it feels is most appropriate. Others are owned by smaller investors or repackaged as a PLS, where these loans have differences in what kind of relief a borrower may receive.

Federally backed or not, the CFPB is already making good on its threats to police mortgage servicers. In late January, the agency released a series of authority actions warning servicers that they need to do right by consumers who need access to forbearance programs. On March 31, the CFPB rescinded seven of its temporary policies put in place due to COVID-19, and said it intends to exercise the full scope of its supervisory and enforcement authority provided under the Dodd-Frank Act.

In April, the CFPB began seeking comments on a proposal that if finalized would temporarily require servicers to enhance communications with borrowers who are delinquent or in forbearance, allow servicers to offer certain streamlined loan modification options to borrowers with COVID-19-related hardships, and require servicers to afford all borrowers a special pre-foreclosure review period.

By the end of the month, news that the Bureau was already actively investigating several servicers was released.

Leave a comment

Most Popular Articles

FHFA to make desktop appraisals permanent

Desktop appraisals, a temporary flexibility implemented in March 2020 amid lockdowns and social distancing, will become permanent, the FHFA said today.

Oct 18, 2021 By

Latest Articles

New York poised to expand CRA rule to nonbank lenders

New York State is close to approving a controversial bill that expands the requirements of the CRA to non-depository lenders, following the lead of Massachusetts and Illinois.

Oct 25, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please